Any business organization is an amalgamation of different units and departments and each of these units must work together to become more profitable. Each unit is meant to perform specific tasks and has got their own rules and regulations which has to be followed accordingly. Be it establishing a business unit or financial restructuring of an established organization, it involves a lot of legal procedures which should not be ignored.
Now, it turns out to be extremely important that the steps taken at this point need to be supervised by a business entity so as to make sure that the tasks which are being performed not only match with the set standard but are also legally correct. This is where the term ‘Regulatory Compliance’ and its management comes into the picture.
Let’s understand it in detail.
What Is Regulatory Compliance?
The word’ Regulatory Compliance involves two words that hold an in-depth meaning. Regulatory refers to the governing body that authorizes the legal laws and compliance simply mean to follow the set standards. It is applicable to any and every business organization dealing in all of the business sectors. It is one of the core responsibilities of any company to follow all the rules and regulations of the jurisdiction. In short, we can say that regulatory compliance is a must for any company so that it can keep track that all the rules and regulations are followed in order to achieve the ultimate organizational goal.
Domains Covered under Regulatory Compliance
The compliance covers different domains of a business organization. It is not limited to a specific level and goes beyond in covering a specific area of origin, territory, and country etc. where the business transactions take place. A few of the domains are bellows:
- Hiring Practices
- Health Benefits and Employee Privacy
- Work Environment
- Wages and Hour
- Workplace Safety
- Recruitment and Retention
- Employee Discipline and Termination
Now, let’s have a look at the requirements to initiate the regulatory compliance followed by the reasons for which regulatory compliance management turns out to be essential.
